Obama Wants Insurance Rate Hike Regulation

President Barack Obama is trying to revive his stalled national health care overhaul by taking the fight to the private insurance companies.

Mr. Obama on Monday will propose giving U.S. officials the power to limit rate hikes by health insurance companies, in a last-ditch bid to salvage his signature issue.

The proposal would give the federal Health and Human Services Department - in conjunction with state authorities - the power to deny egregious premium increases, roll them back, or demand rebates for consumers, said a White House official, speaking Sunday on condition of anonymity because details have not yet been officially released.

The United States is the only developed nation that does not have a comprehensive national health care plan for all its citizens. Many people rely on private insurance plans.

In addition, Mr. Obama will propose an additional series of measures, first brought by Republicans, to eliminate waste, fraud and abuse, which would do away with the controversial "special deal" for Nebraska, reports CBS News senior White House correspondent Bill Plante.

The deal refers to Sen. Ben Nelson, D-Neb., who, in exchange for his vote, federal taxpayers will now pay for most Medicaid expansion in Nebraska, dubbed by Republicans as the "cornhusker kickback."

Recent insurance premium hikes of as much as 39 per cent sought by Anthem Blue Cross in California have given Mr. Obama a new argument for his sweeping health care reforms, now stalled in Congress.

The proposal for tighter oversight of private insurers, modeled on legislation proposed by Democratic Sen. Dianne Feinstein, will be part of a sweeping overhaul plan which the White House plans to post on its Web site at 10 a.m. Monday, ahead of a health care summit with congressional leaders of both parties on Thursday.

"The President believes the bipartisan discussion on Thursday will be the most productive if Democrats come to the table with a consolidated proposal - what he's releasing today - and he hopes the Republicans will follow suit and come with their own unified proposal. He'll be open to Republican ideas, and he hopes they'll be open to ours," a White House official tells CBS News.

The broader plan, likely to be opposed by the Republicans, is expected to require most Americans to carry health insurance coverage, with federal subsidies to help many afford the premiums. Hewing close to a stalled Senate bill, it would bar insurance companies from denying coverage to people with medical problems or charging them more. The expected price tag is around $1 trillion over 10 years.

Special Report: Health Care Reform

The summit at Blair House, the White House guest residence, will be televised live on C-SPAN's unedited TV feed and perhaps on cable news networks. It represents a risky and unusual gamble by the administration that Mr. Obama can save his embattled overhaul through persuasion - on live TV.

It was forced on the administration by the Senate special election victory of Massachusetts Republican Scott Brown in January. He captured the seat long held by Democrat Edward M. Kennedy, a lifelong champion of health care reform, who died last year. Brown's victory reduced the Democrats' majority in the Senate to 59 votes, one shy of the number needed to knock down Republican delaying tactics.

Senate Republican Minority Leader Mitch McConnell said Sunday he would participate, but insisted Mr. Obama and congressional Democrats would be wrong to push the bills they wrote in the House and Senate.

"The fundamental point I want to make is the arrogance of all of this. You know, they are saying: 'Ignore the wishes of the American people. We know more about this than you do. And we're going to jam it down your throats no matter what.' That is why the public is so angry at this Congress and this administration over this issue," McConnell said.

"They're (Republicans) definitely not going to go for that," former GOP strategist Ed Rollins told CBS' "The Early Show" Monday, calling the move "pure theater."

Thursday's meeting takes place nearly a year after Mr. Obama launched his drive to remake health care - a Democratic agenda priority for decades - at an earlier summit he infused with a bipartisan spirit. The president will point out that Republicans have supported individual elements of the Democratic bills.

Under the Mr. Obama plan, regulators would create a competitive marketplace for small businesses and people buying their own coverage. The plan would be paid for with a mix of Medicare cuts and tax increases. It would also strip out special Medicaid deals for certain states, while moving to close the Medicare prescription coverage gap and making newly available coverage for working families more affordable.

About 50 million of America's 300 million people are without health insurance. The government provides Medicaid and Medicare coverage for the poor and elderly, but most Americans rely on private insurance, usually received through their employers. However, not all employers provide insurance and not everyone can afford to buy it on their own. With unemployment rising, many Americans are losing their health insurance when they lose their jobs.

[jaredjb]

Since insurance companies can't deny children for medical conditions, they have to accept all children who apply. It doesn't matter what medical conditions the child has when they apply, the claims must be paid by the insurance company if they are legit.

Of course insurance companies in Utah have to raise rates to cover for that, or else they would simply go out of business. The insurance companies would lower their rates as much as they could to remain profitable, and still be competitive. It's simple economics. This is just one example of how Utah insurers can justify raising their rates as they have. There are more.

The fact is that healthcare reform is going to raise costs. No doubt about it. You can't add millions of people with health conditions and expected claims to a healthcare system (as will be done in 2014) and expect rates to go down or stay the same.

Jared B.
<a href="http://www.utahinsurance.org">Utah Health Insurance Agent</a>
www.utahinsurance.org

[Biggbaddog]

Well I for one do not understand why the people keep voting for Publicrats and Demopublicans. There the same Party. There is no difference between them anymmore but you keep voting them into office. It has been these two that have put us where we are today...Another thing is the majority of these officials are Attorneys...I think the best thing that could be done with all of them is to put them on island of there own and leave them there to fend for them selves. All they do is take it from those that have it and give to them that don't deserve it...I say we strip their Golden Parachute Retirement that they do not pay a dime into and their Rolls Royce Health Plan they have given themselves and make them retire on Social Security and Medicare like they expect everyone else to...I'm sick of the Fedral Government, the State Government, the County Government, and the City Goverment Stealing me blind and giving to a bunch of illegals in the way of welfare, foodstamps,education,and medical benefits. Talk about discremenation, I'm an American without a Country who is not allowed to have anything because it's taxed away. Take a look at your phone bill, your water bill, your TV bill, your Internet bill, your grocery bill, your electric bill, your gas bill..Taxes,Taxes, Taxes, and they want to pile on more Taxes...We need a different Party that is for the commomn citizen. Kick the United Nations out on their Ass, bring our boys home and take care of We the People. Once we do that then we can take another look at helping others. We need to help us. We need to stop sending our jobs over to China, Mexico, Indonesia and any other place. We need stop the in sourcing of our jobs by givng them to illegals here in our country. We need to do something about our education system. It's a total failure. We're handing out diplomas to kids that can't read or write or do math. You ask them where Washington DC is and the answer you get is Washington State. It's a shame where we are today...A young country that is only a little over two hundred years old that was once wealthy and healthy who is now sick , sorry, and broke and now been sold by Wall Streets Goldmen and Sacks...All the ones that got us into this mess have been belled out by the Feds who have Hocked Three more generations of our youth...Talk about Slavery. We've all been sold out by a bunch of Sleezy Burro Rats.

[reveal4]

Get used to it...The Republican senior club here on the CBS blogs are clearly, concisely, and incontrovertibly uninterested in anyone else. They don't care about other people. They don't care if insurance companies are profiteering. They don't give a damn. They want their inefficient, costly, medicare that they get an almost 3 to 1 return for their investment from. On average, seniors pay in $65000 to Medicare and receive $165,000 in benefits from Medicare. They do not want a more efficient,,more medically effective and lower cost Medicare. They want bloated costs, and they want to pass these bloated costs on to their grandchildren. They don't care if medicare goes bust, as long as it is after they are gone. They want the American taxpayer to continue to pay more than 50% of their medical care costs, and don't care if it bankrupts the program. They want to squeeze every penny of benefit from Medicare and don't care if Medicare isn't around for future generations. They are fighting for socialism, not against it. They are fighting for higher costs, not lower. They are fighting for insurance companies to drop policies, raise rates, and leave people to die! They are narcissists, pure and simple. Narcissists have no compassion or empathy and don't care about anyone other than themselves. This is unhealthy and psychologically abnormal and the standard for the Republican seniors who oppose reform. They don't care about other people and relish their lack of basic humanity. Get used to it. Narcissism is incurable and we have an entire generation of older Republican seniors who are the "Lost Generation."

[mumma11]

More shameful predatory politics from a desperate Administration that will wrongfully attack people to gain their purpose. Not the change I hoped for.

[inketolstoy]

I propose giving U.S. voters the power to limit deficit spending hikes by our federal and state governments. It makes me want to laugh (and cry) when members of our government ask us to trust them when it cames to making sound financial decisions. When has the federal government ever demostrated finacial responsibility? Why should we put those pigs in charge of the feed bag?

[newsterl]

Mr. Obama on Monday will propose giving U.S. officials the power to limit rate hikes by health insurance companies,"

ABout a day and a dollar too late, just like with the credit card reform law that didnt take effect till MONTHS after it was signed, which gave credit card co's months to jack up interest rates and drop customers they didnt want

[taiotoshi8602]

newsterl, I agree. I also think there will be loop holes left so the insurance companies will be able to evade the intended protection, just as the credit card companies have and will do. Also, in the last proposal the Obama's health care plan wasn't going to take effect until 2014 and that was back in 2009. As weak and watered down as it is, we need health care reform now, not 5 years from now.

Also, I just can't understand how the reps. can continue to assert that most of America is against health care reform, that's just bull. I will agree that many are against the current uni-partisan proposals (they are quite lame)but health care reform as a general concept is much needed and wanted by average working-class Americans. To assert otherwise is just plain foolish.

[MadHatter16]

As Americans we should always have a right to choose what we want. Personally I am against this new health care overhaul. Once you give up the right to PAY for your services your services will suffer.... you wont be paying for them, but you'll get exactly what you pay for... nothing. Why doesn't he just do something useful.

[Zann-Zel]

Have you seen a Canadian lately, or an Englishman or a German or a Frenchman? Did they look unhealthy to you? Did it look like they weren't getting the healthcare they needed? Why in the world if every other developed nation in this world can do this do you think we can't? I swear this nation is suffering from a massive case of low self-esteem! : (

[usaguy2010]

Hey Zann of course you don't see the unhealty ones walking around they're all in the hospital getting horrible care... Wake up

[pgkuchar]

Cost controls have never worked and they never will. Obama is looking at this all wrong. While we can all agree the rate hikes are incredible, government regulation of their rates will backfire. He needs to find another way. A countrywide government controlled insurance plan comes to mind....

[rightbehind]

Give us a very strong robust public option through reconciliation!

[FDR100DAYS]

Obama pass the health care BILL, if you dont those Republican will come with their own health care bills. If they do that, it will show the America people that the Republicans can get things done. That would not be a good look for the Democratics..Forget Bi-partisian, when have Americans really gotten anything done together. Also, think what Republicans have stock in the Health care insurance companies. Next, what is the real reason Republicans dont want the health care to be pass? IT cant real be because of the national debt, with the trillions of dollar they give Bush. Last, if the Repuublicans STOP health care reform they would have killed the President promise to the American people. Passing health care bill will make the President Obama Approval Rate go up with the American people. Forget Bi-partisian and pass the HEALTH CARE BILL...Democratics get on the ball and stop talking against the President and work together..